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Does prescription drug coverage improve mental health? Evidence from Medicare Part D

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  • Ayyagari, Padmaja
  • Shane, Dan M.

Abstract

The introduction of the Medicare Prescription Drug program (Part D) in 2006 resulted in a significant increase in access to coverage for older adults in the U.S. Several studies have documented the impact of this program on prescription drug utilization, expenditures and medication adherence among older adults. However, few studies have evaluated the extent to which these changes have affected the health of seniors. In this study we use data from the Health and Retirement Study to identify the impact of the Medicare Part D program on mental health. Using a difference-in-difference approach, we find that the program significantly reduced depressive symptoms among older adults. We explore the mechanisms through which this effect operates and evaluate heterogeneity in impact.

Suggested Citation

  • Ayyagari, Padmaja & Shane, Dan M., 2015. "Does prescription drug coverage improve mental health? Evidence from Medicare Part D," Journal of Health Economics, Elsevier, vol. 41(C), pages 46-58.
    • Handle: RePEc:eee:jhecon:v:41:y:2015:i:c:p:46-58
    DOI: 10.1016/j.jhealeco.2015.01.006
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    Cited by:

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    2. Padmaja Ayyagari & Daifeng He, 2017. "The Role of Medical Expenditure Risk in Portfolio Allocation Decisions," Health Economics, John Wiley & Sons, Ltd., vol. 26(11), pages 1447-1458, November.
    3. Pak, Tae-Young & Kim, GwanSeon, 2017. "The impact of Medicare Part D on cognitive functioning at older ages," Social Science & Medicine, Elsevier, vol. 193(C), pages 118-126.
    4. Yiran Han & Baris K. Yörük, 2022. "Age-Based Health Insurance Coverage Policies and Mental Health," CESifo Working Paper Series 9893, CESifo.
    5. Gretta Mohan & Anne Nolan, 2020. "The impact of prescription drug co-payments for publicly insured families," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(2), pages 261-274, March.
    6. Ma, Yuanyuan & Nolan, Anne & Smith, James P., 2020. "Free GP care and psychological health: Quasi-experimental evidence from Ireland," Journal of Health Economics, Elsevier, vol. 72(C).
    7. Maclean Johanna Catherine & Hill Terrence D., 2017. "Economic Conditions at School Leaving and Sleep Patterns Across the Life Course," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(2), pages 1-37, April.
    8. Laetitia Lebihan, 2023. "The impact of a mandatory universal drug insurance program on health behaviors and outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 32(9), pages 2006-2046, September.
    9. Bai, Jin & Tang, Jue & Xie, Qiang, 2022. "Does children’s marriage matter for parents' mental health？Evidence from China," Journal of Asian Economics, Elsevier, vol. 78(C).
    10. Joan C. Lo, 2019. "Employment pathways of cancer survivors—analysis from administrative data," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(5), pages 637-645, July.
    11. Ausmita Ghosh & Kosali Simon & Benjamin D. Sommers, 2017. "The Effect of State Medicaid Expansions on Prescription Drug Use: Evidence from the Affordable Care Act," NBER Working Papers 23044, National Bureau of Economic Research, Inc.
    12. Padmaja Ayyagari & Dan M. Shane & George L. Wehby, 2017. "The Impact of Medicare Part D on Emergency Department Visits," Health Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 536-544, April.
    13. Padmaja Ayyagari, 2016. "Prescription drug coverage and chronic pain," International Journal of Health Economics and Management, Springer, vol. 16(2), pages 189-200, June.

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    More about this item

    Keywords

    Medicare Part D; CESD score; Difference-in-difference; Antidepressants; Prescription drug coverage;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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